Amid growing concerns about the state of the global economy, the ongoing collapse in oil prices is testament to the difficulty encountered by Central Bankers as they attempt to stem the slide in financial assets and create ideal conditions for borrowing and growth. Much of the softness in global trade is emanating in Asia where plunging imports combined with softer economic activity is contributing to lessened demand for oil. Supply conditions remain problematic as evidenced by the most recent Iranian pledge to raise output in order to protect market share, further contributing to the prevailing oversupply problem. Brent crude oil has fallen below $45 per barrel for the first time since 2009 and WTI approaching the lows set back during the last financial crisis. The spread between the two benchmarks is collapsing once again with the difference between the Brent and WTI sliding to just over $5 points.
Crude Collapse Continues
Daily Analysis - 24/08/2015